We own a gas guzzling full size van we now rarely drive as well as a car purchased last summer and a old car with 170,000 miles on it. The new car is the only one with a loan.
The van would probably fetch about $6,000 on trade. I'm wondering if it's a decent strategy to trade the van in now while our credit is clean so we'll have two decent vehicles post Chapter 7. I'm assuming even if we put $6,000 down on a new car the depreciation once purchased would close the gap between KBB value and loan balance to an acceptable level for exemption purposes.
We meet with our first BK attorney next week but I'd like to do this transaction this weekend if it makes sense to do so.
Are there issues with securing new credit shortly before filing?
We are also considering refinancing our mortgage and 2nd mortgage to a combined 15 year 1st mortgage before filing. Will this be okay?
As always, experienced advice is very much appreciated!
The van would probably fetch about $6,000 on trade. I'm wondering if it's a decent strategy to trade the van in now while our credit is clean so we'll have two decent vehicles post Chapter 7. I'm assuming even if we put $6,000 down on a new car the depreciation once purchased would close the gap between KBB value and loan balance to an acceptable level for exemption purposes.
We meet with our first BK attorney next week but I'd like to do this transaction this weekend if it makes sense to do so.
Are there issues with securing new credit shortly before filing?
We are also considering refinancing our mortgage and 2nd mortgage to a combined 15 year 1st mortgage before filing. Will this be okay?
As always, experienced advice is very much appreciated!
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